The prospect of peace regarding the Ukraine situation could significantly reduce geopolitical tensions worldwide. On this wave, the price of gold — which traditionally functions as a safe-haven asset — may resume falling. This decline may occur even despite the Federal Reserve's monetary policy decision, which is expected to pressure the US dollar through a 0.25% interest rate cut.
From a technical perspective, gold prices are still in a short-term uptrend and remain above the support level of 2150.50. A downward breakout of this level could lead to further declines.
Technical picture and trading idea:
The price is above the midline of the Bollinger Bands and above the SMA 5 and SMA 14, which confirm a downward tendency. The RSI is above the 50% level and moving horizontally. The Stochastic indicator is still rising.
A decline and consolidation of gold below the level of 2150.50 may trigger a drop toward 2045.00. A potential entry point for selling could be the level of 2136.00.
